Journal Article
The distributional impact of austerity and the recession in Southern Europe
Publication details
Summary
Southern European welfare states are under stress. On the one hand, the
recession has been causing unemployment to rise and incomes to fall. On
the other hand, austerity has affected the capacity of welfare states to
protect those affected. This paper assesses the distributional
implications of the crisis in Greece, Spain, Italy and Portugal from
2009 to 2013. Using a microsimulation model, we disentangle the
first-order effects of tax–benefit policies from the broader effects of
the crisis, and estimate how its burden has been shared across income
groups. We conclude by discussing the methodological pitfalls and policy
implications of our research.